So, given my Situation, I’ve had to do a lot of learning about the best ways to manage money. One of the web’s most amazing resources on the topic is Ramit Sethi’s I Will Teach You to be Rich. He’s got a lot of great advice about spending behaviors as habits, automation of your finances, and being intelligent about where your money goes. My favorite piece of advice of his, though, is to spend whatever you need to on the things you really care about, and then cut costs on everything else. His book, which just came out last month and is at the top of the NYTimes, Wall Street Journal, and Amazon bestseller lists, features a lot of awesome advice about how to negotiate your bills down, get your credit card interest rates adjusted, and get the most out of your savings and retirement accounts.

His biggest piece of advice, though, is this: Spend on what you care about, and cut costs everywhere else. Makes sense, right? It’s better than mere frugality, which I’ve tried and failed at—pinching pennies to no real ends. In this mindset, I’m able to decide what I spend on. So here’s how I do it.

Where I’m Saving Money These Days

    Clothing. I’m not a compulsive shopper, but I really, really enjoy thrifting and finding hidden gems among the racks and racks of randomness. But the truth is, having been an inveterate thrifter for several years now, in addition to whipping up new scarves and skirts with astonishing rapidness, I don’t really need anything at this point, at least not as much as I need to get rid of my debt. So I’m putting it on hold until I really need something or I’m more on top of my finances. [The next item I anticipate needing to add to my wardrobe is a one-piece bathing suit. Luckily, BurdaStyle recently posted the pattern for this adorable thing, so I might attempt to make a suit myself instead of buying one. Whether this will actually save me money is questionable—I'll let you know how it goes.]

  • Meals out. I loved eating out with friends, particularly brunching, but I’m kind of done with it for awhile. In addition to costing tons more than the dishes I make at home, there’s always some kind of issue. Not everyone wants Mexican, so whenever we meet at a taqueria, someone’s bitching about it. Someone’s running late and we’re waiting on them to order. Someone didn’t bring cash and we have to work out who owes what to whom. Such a mess. Maybe the hassle wouldn’t bother me so much if eating out were free, but I don’t think I’m gaining much by doing it now. When I do eat out, it’s usually because of some kind of special event, like Robert’s birthday earlier this week. [Or it's because I crave Pinkberry, which happens maybe every two weeks.]
  • Professional grooming for my dog. I used to pay upwards of $125 to get my dog washed every few months. As of now, my dog gets a bath in my tub and a shave with my roommate’s trimmers every few weeks. [Luckily, he walks outside enough that I don't really have to worry about clipping his toenails…because that's a job that I leave completely to the pros.]
  • Coffee. Actually, I’m not really caring so much about this anymore. I used to stop at the bodega sometimes on the way to the train station because it’s cheaper and loads tastier than buying coffee anywhere in the city [sidenote: can anyone explain to me the reasons why there aren't any non-Starbucks coffee shops throughout most of Manhattan? I'm not a Starbucks hater, but come on], but I’ve discovered that the coffee I make at home [typically the oh-so-tasty New York staple Chock Full o'Nuts] is just as good and way cheaper. Plus, I don’t have to worry about sloshing it on my shirt [which inevitably happens whenever I'm drinking and walking at the same time].
  • Expensive wine, and drinking outside my house in general. I don’t have the patience for wine tasting, and since three-buck Chuck fits into my budget, that’s pretty much all I drink anymore. Also, these days, I’m drinking less when I go out, because it saves me money on my bar tab and I don’t have to pay for a cab ride to avoid tottering home alone. [See the dislaimer below about bourbon, though.]
  • Haircuts for myself. Full disclosure: I’ve been cutting my own hair since right after I moved to New York. I did a hair modeling gig where I got my fantastic asymmetrical bob, and rather than paying someone to maintain it, I bought a razor comb and started doing it myself. Also, I’ve been growing my hair out since January, transitioning from the asymmetrical bob to shoulder-length layers until I decide what I want to do with it next. [However, this presents an extra expense…namely, I haven't owned a hairbrush since 2006, and I'm going to have to buy one soon, along with some headbands and ponytail holders and all the accoutrements that come along with hair maintenance. Damn.]
  • Books and music. My roommate has a book/music collection that rivals the small libraries in rural Ohio. Almost everything I need, I can find there. And everything else comes from the library. No need to spend! Also, whenever I’m home, I’m constantly playing either Woxy [OHIO REPRESENT!] or SomaFM, so I never feel a dearth of good new music in my life. Finally, Pandora just release Pandora Radio for the BlackBerry, so I’m anxious to try that out too. So much good free stuff, why should I pay?

Things I Won’t Scrimp On

  • Shoes. I’m not a shoe fiend, but I refuse to buy cheap shoes—you know that buy for quality because it means they last longer.
  • Liquor. When [read: If] I get to the point where I’m working less and more able to enjoy crazy evenings with dancing and music and wildness in the streets, I’m going to do it with good liquor. I’m way past the point of getting plastered with the help of Popov and Glenmore vodkas, because drinking them is so much less rewarding, not to mention the hangovers are so so much worse. Exhibit A: Bourbon. I’m from Kentucky. I’m kind of a bourbon snob. I’ll drink only Maker’s Mark or better, and anything resembling Rebel Yell Kentucky Whiskey will never pass my lips again. [It seriously exists. And it's exactly like it sounds. Don't ask.]
  • My computer, my cell phone, and my monthly WiFi bill. Because honestly? I couldn’t blog without them, y’all.

What do you guys spend extra money on? Where do you save money in your budgets?

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